The legislation passed 33-11 at the parliament's key Economic and Monetary Affairs committee. European Union finance ministers at the European Council are expected to approve their version of the legislation Tuesday night, kicking off what will likely be months of talks between the council, the parliament and the European Commission, the EU's executive arm, over a final version that will become law.
The parliament's legislation will require funds to register with European authorities. Fund managers that use borrowed money, or leverage, will have to file plans with the authorities setting limits on how much leverage they can use, and a new EU regulator would have the power to cap leverage at funds that pose "systemic" risks.
Most controversially, the legislation would effectively black-list some nations: European investors would be forbidden from sending their money to funds based in countries that lack adequate financial regulation.
EU-Digest: finally - Bravo !
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